The Australian share market rallied on Tuesday, setting a fresh record for the second consecutive session as speculation intensified that the US Federal Reserve will begin its easing cycle with a significant rate cut later this week.
The S&P/ASX 200 Index gained 19.3 points, or 0.2%, closing at 8,140.9 after briefly reaching an intraday high of 8,150.5 points. All 11 industry sectors posted gains, with technology and property stocks leading the advance.
Overnight, both the Dow and the equal-weight S&P 500 hit record highs, although gains were subdued ahead of the Fed’s policy meeting on Thursday (AEST).
Rate-sensitive tech stocks surged, with Xero leading the sector with a 2.6% rise to $148.10 after announcing plans to acquire cloud-based analytics firm Syft Analytics for up to $US70 million. TechnologyOne also climbed 2.4% to $23.71.
Property stocks saw strong performance, led by Mirvac and Vicinity Centres, each gaining 1.3%. However, the major banks had a muted session, with Westpac rising 0.7% to $33.03.
In corporate developments, Platinum Asset Management confirmed receiving a buyout offer from Phil King’s Regal Partners, sending Platinum shares soaring 13% to $1.115. Under the offer, shareholders would receive 0.274 Regal shares for each Platinum share, with an additional 24¢ dividend from cash reserves if the deal proceeds. Meanwhile, Regal shares slipped 3% to $3.20.
Elsewhere, coal miner New Hope rose 1.7% to $4.32 after announcing a 22¢ dividend. Pacific Smiles jumped 6.3% to $1.87 following a sweetened takeover offer from Genesis Capital. Adairs rose 2.3% to $1.79 after appointing former Country Road MD Elle Roseby as its new CEO.
Iron ore giants had a mixed session, with BHP flat at $39.55 while Fortescue rallied 1.8% to $17.49, supported by a higher iron ore price in Singapore.
On the bond markets, 10-year and 2-year rates were at 3.838% and 3.502%, respectively.
